Shield Thera Share News (STX)

(Sharecast News) - Commercial-stage pharmaceutical company Shield Therapeutics announced on Tuesday that 'ACCRUFeR', or ferric maltol, had been approved by Health Canada as a prescription drug for the treatment of adults with iron deficiency anaemia (IDA).

The AIM-traded firm said the approval made ACCRUFeR the only oral iron therapy available as a prescription drug in Canada, marking a significant milestone for the company.

With Health Canada's approval, Shield's partner Kye Pharmaceuticals was now poised to launch ACCRUFeR in the Canadian market.

Shield said it would handle all manufacturing and supply operations for the Canadian distribution of the product.

The approval was expected to address a significant unmet need for patients in Canada suffering from iron deficiency, with or without anaemia, by providing a novel oral treatment option.

Under the terms of the collaborative agreement between Shield and Kye, Shield was set to receive a milestone payment of £0.25m following the approval.

Additionally, Shield said it would benefit from further revenue-based milestone payments and would receive double-digit royalties on the net sales of ACCRUFeR in Canada throughout the agreement's duration.

"We are delighted with the progress made in partnership with Kye since the signing of the licence agreement in January 2022," said interim chief executive officer Anders Lundstrom.

"Both organisations have demonstrated excellent collaboration and are driven to make ACCRUFeR available to patients in Canada with iron deficiency as quickly as possible.

"Shield Therapeutics is committed to bringing ACCRUFeR and FeRACCRU to patients with iron deficiency around the world, and Canada is an important component of that mission."

At 1159 BST, shares in Shield Therapeutics were up 6.53% at 4.05p.

Reporting by Josh White for Sharecast.com.